Bitcoin Falls Down, Nearly $ 4 Billion Fund Has Been Liquidated In The Last 24 Hours

Bitcoin, the leading cryptocurrency, has experienced a decline of about $ 3,000 in recent hours. The decline was observed not only in Bitcoin but also in altcoins.

In the last 24 hours, nearly $ 4 billion of funds have been liquidated.

The biggest liquidation from a single source took place on the global cryptocurrency exchange Huobi. A Huobi user said goodbye to his $ 11.28 million fund in BTC parity.

In the last 24 hours, 1.31 billion dollars of funds from BTC funds have been liquidated. ETH followed with $ 652 million, XRP of $ 394 million and DOGE of $ 245 million.

3.16 billion dollars of the liquidation of 3.71 billion dollars realized in the last 24 hours was realized in long positions, while 546 million dollars were realized in short positions.

The most liquidated exchange was the global cryptocurrency exchange Binance, with 48.93% of the total liquidation amount, that is, $ 1.81 billion.

What is Liquidation?

Liquidation or liquidation seems very complicated, but it is actually a simple concept. Investors buy Bitcoins using leverage, thinking that the rise in the price of Bitcoin will continue and bring more profits.

However, when the Bitcoin price falls below the liquidation price of their positions, there is more loss than the investor has. Since the investor cannot compensate the losses, the stock market forces investors to liquidate or close their positions.

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